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Nigeria’s marketing agencies that are seriously affected by the economic downturn under the present administration have started to cut workers’ salaries to stay afloat, BusinessDay has gathered.
The percentage of the salaries’ cut differs, but according to a source, the average is 25 percent across cadres in the agencies. A particular agency operating in Lagos informed its workers about this development and said it is a measure to sustain the business in the difficult time. Apart from this measure, another company is downsizing.
The agencies’ tough time is exacerbated by the cut in companies’ marketing communication budgets and delay in payments for jobs executed, developments that are informed by the challenging times.
“One of the factors keeping some agencies from sinking is affiliation” they entered into with foreign partners. This is allowing them to execute some businesses, another source told BusinessDay.
Assessing what the media agencies are going through, Segun McMedal, President of Lagos chapter of Nigerian Institute of Public Relations said it will be difficult to divorce the larger economy from marketing communication industry. “It is tough out there and this naturally translates whether agencies are getting businesses or not”
According to him, such downsizing is to fit in. The tough time, he said is not limited to marketing agencies but even the manufacturers in Nigeria and the signs still don’t appear to be good, he said.
Today, Nigerian companies appear to be overburdened by the difficult operating environment, occasioned by poor infrastructure and unfriendly policies that have eroded their margins.
Companies in Africa’s biggest oil producer, suffered greatly from a recession that occurred in 2016 owing to a global collapse in oil prices.
The fall in the oil prices caused a huge dollar shortage for the oil dependent nation since it gets … Read More...